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Segment Information (Tables)

9 Months Ended

Jan. 26, 2025

Schedule of Operating Segments Information

Statements of operations for our operating segments are as follows:


	Three months ended
	January 26, 2025			January 28, 2024
Net sales by segment:
Mattress fabrics	$	28,642		$	30,021
Upholstery fabrics		23,611			30,397
Net sales	$	52,253		$	60,418
Gross profit:
Mattress fabrics	$	2,743		$	1,520
Upholstery fabrics		4,228			6,122
Segment gross profit		6,971			7,642
Restructuring related (charge) credit (1)(2)		(624	)		61
Gross profit	$	6,347		$	7,703
Selling, general, and administrative expenses by segment:
Mattress fabrics	$	3,176		$	3,102
Upholstery fabrics		3,549			4,030
Unallocated corporate expenses		1,854			2,361
Selling, general, and administrative expenses	$	8,579		$	9,493
(Loss) income from operations by segment:
Mattress fabrics	$	(433	)	$	(1,582	)
Upholstery fabrics		679			2,092
Unallocated corporate expenses		(1,854	)		(2,361	)
Total segment loss from operations	$	(1,608	)	$	(1,851	)
Restructuring related (charge) credit (1) (2)		(624	)		61
Restructuring expense (3)(4)		(1,655	)		50
Loss from operations	$	(3,887	)	$	(1,740	)
Interest expense		(63	)		—
Interest income		255			284
Other income (expense)		15			(705	)
Loss before income taxes	$	(3,680	)	$	(2,161	)

(1) During the three months ended January 26, 2025, gross profit includes restructuring related charges totaling $624,000 for losses on the disposal and valuation of inventory related to the gradual discontinuation of operations at our manufacturing facility located in Quebec, Canada.

(2) During the three months ended January 28, 2024, gross profit includes a restructuring related credit of $61,000 for the gain on disposal of inventory related to the discontinuation of production of cut and sewn upholstery kits at the company's facility located in Ouanaminthe, Haiti.

(3) During the three months ended January 26, 2025, restructuring expense of $1.7 million mostly relates to the mattress fabrics segment. The $1.7 million restructuring expense represents (i) $1.5 million for the consolidation of our mattress fabrics operations located in Quebec, Canada into our facility located in Stokesdale, North Carolina and (ii) $176,000 for employee termination benefits, partially offset by (iii) a net gain of $(33,000) for the impairment and sale of equipment. See Note 10 to the consolidated financial statements for further details and description of our Fiscal 2025 Restructuring Plan.

(4)The restructuring credit of $50,000 for the three months ended January 28, 2024, represents a gain on the sale of equipment related to the discontinuation of production of cut and sewn upholstery kits in Ouanaminthe, Haiti.


	Nine months ended
	January 26, 2025			January 28, 2024
Net sales by segment:
Mattress fabrics	$	86,792		$	90,619
Upholstery fabrics		77,672			85,185
Net sales	$	164,464		$	175,804
Gross profit:
Mattress fabrics	$	4,862		$	5,997
Upholstery fabrics		14,061			16,780
Total segment gross profit	$	18,923		$	22,777
Restructuring related charge (1) (2)		(1,509	)		(40	)
Gross profit	$	17,414		$	22,737
Selling, general, and administrative expenses by segment:
Mattress fabrics	$	9,880		$	9,913
Upholstery fabrics		11,056			11,969
Unallocated corporate expenses		6,299			7,484
Selling, general, and administrative expenses	$	27,235		$	29,366
(Loss) income from operations by segment:
Mattress fabrics	$	(5,018	)	$	(3,916	)
Upholstery fabrics		3,005			4,811
Unallocated corporate expenses		(6,299	)		(7,484	)
Total segment loss from operations	$	(8,312	)	$	(6,589	)
Restructuring related charge (1) (2)		(1,509	)		(40	)
Restructuring expense (3) (4)		(6,317	)		(432	)
Loss from operations	$	(16,138	)	$	(7,061	)
Interest expense		(121	)		—
Interest income		761			911
Other expense		(898	)		(560	)
Loss before income taxes	$	(16,396	)	$	(6,710	)

(1) During the nine months ended January 26, 2025, gross profit includes restructuring related charges totaling $1.5 million for losses on the disposal and valuation of inventory related to the gradual discontinuation of operations at our manufacturing facility located in Quebec, Canada.

(2) During the nine months ending January 28, 2024, gross profit includes a restructuring related charge of $40,000, which represents markdowns of inventory related to the discontinuation of production of cut and sewn upholstery kits at the company's facility located in Ouanaminthe, Haiti.

3) During the nine months ending January 26, 2025, restructuring expense of $6.3 million mostly relates to the mattress fabrics segment. The $6.3 million restructuring expense represents (i) $2.7 million for the consolidation of our mattress fabrics operations located in Quebec, Canada into our facility located in Stokesdale, North Carolina, (ii) $1.5 million for impairment of and accelerated depreciation related to property, plant, and equipment, (iii) $1.4 million for employee termination benefits, and (iv) $849,000 for lease termination costs, partially offset by a gain on sale and disposal of equipment totaling $(174,000). See Note 10 to the consolidated financial statements for further details and description of our Fiscal 2025 Restructuring Plan.

(4) Restructuring expense of $432,000 for the nine months ending January 28, 2024, represents a $329,000 impairment charge associated with equipment and $103,000 for employee termination benefits related to the discontinuation of production of cut and sewn upholstery kits in Ouanaminthe, Haiti.

Balance sheet information for our operating segments follows:


(dollars in thousands)	January 26, 2025		January 28, 2024		April 28, 2024
Segment assets:
Mattress Fabrics:
Accounts receivable	$	11,607	$	11,463	$	10,003
Inventory		31,377		27,925		27,671
Property, plant and equipment (1)		24,210		32,263		31,472
Right of use assets (2)		200		1,798		1,627
Assets held for sale (3)		2,214		—		—
Total mattress fabrics assets		69,608		73,449		70,773
Upholstery Fabrics:
Accounts receivable		11,552		12,223		11,135
Inventory		17,222		18,952		17,172
Property, plant and equipment (4)		1,117		1,155		1,125
Right of use assets (5)		2,647		2,345		1,952
Total upholstery fabrics assets		32,538		34,675		31,384
Total segment assets		102,146		108,124		102,157
Non-segment assets:
Cash and cash equivalents		5,279		12,585		10,012
Short-term investments - rabbi trust		1,753		937		903
Short-term notes receivable		526		260		264
Current income taxes receivable		1,137		476		350
Other current assets		2,619		4,237		3,371
Long-term notes receivable		1,254		1,530		1,462
Deferred income taxes		490		531		518
Property, plant and equipment (6)		612		603		585
Right of use assets (7)		3,256		2,809		2,624
Intangible assets		1,594		1,970		1,876
Long-term investments - rabbi trust		6,250		7,083		7,102
Other assets		639		853		830
Total assets	$	127,555	$	141,998	$	132,054

(1)

The $24.2 million as of January 26, 2025, represents property, plant, and equipment of $23.0 million, $973,000 and $221,000 located in the U.S., Haiti, and Canada, respectively. The $32.3 million as of January 28, 2024, represents property, plant, and equipment of $21.9 million, $9.8 million, and $600,000 located in the U.S., Canada, and Haiti, respectively. The $31.5 million as of April 28, 2024, represents property, plant, and equipment of $21.5 million, $9.4 million, and $555,000 located in the U.S., Canada, and Haiti, respectively.

(2)

The $200,000 as of January 26, 2025, represents a right of use asset in Haiti. The $1.8 million as of January 28, 2024, represents right of use assets of $1.2 million and $604,000 located in Haiti and Canada, respectively. The $1.6 million as of April 28, 2024, represents right of use assets of $1.1 million and $545,000 located in Haiti and Canada, respectively.

(3)

The $2.2 million as of January 26, 2025, represents assets held for sale located in Canada.

(4)

The $1.1 million as of January 26, 2025, represents property, plant, and equipment of $1.0 million and $83,000 located in the U.S. and China, respectively. The $1.2 million as of January 28, 2024, represents property, plant, and equipment of $1.1 million and $134,000 located in the U.S. and China, respectively. The $1.1 million as of April 28, 2024, represents property, plant, and equipment of $1.0 million and $120,000 located in the U.S. and China, respectively.

(5)

The $2.6 million as of January 26, 2025, represents right of use assets of $1.9 million and $764,000 located in China and the U.S., respectively. The $2.3 million as of January 28, 2024, represents right of use assets of $944,000 and $1.4 million located in China and the U.S., respectively. The $2.0 million as of April 28, 2024, represents right of use assets of $1.3 million and $709,000 located in the U.S. and China, respectively.

(6)

The $612,000, $603,000, and $585,000 as of January 26, 2025, January 28, 2024, and April 28, 2024, respectively, represents property, plant, and equipment associated with unallocated corporate departments and corporate departments shared by our mattress fabrics and upholstery fabrics segments. Property, plant, and equipment associated with our corporate departments are located in the U.S.

(7)

The $3.3 million, $2.8 million, and $2.6 million as of January 26, 2025, January 28, 2024, and April 28, 2024, respectively, represent right of use assets located in the U.S.

Information about capital expenditures and depreciation expense for our operating segments follows:


	Nine months ended
(dollars in thousands)	January 26, 2025		January 28, 2024
Capital expenditures (1):
Mattress Fabrics	$	1,469	$	2,828
Upholstery Fabrics		280		219
Unallocated Corporate		789		167
Total capital expenditures	$	2,538	$	3,214
Depreciation expense:
Mattress Fabrics (2)	$	5,166	$	4,422
Upholstery Fabrics		464		475
Total depreciation expense	$	5,630	$	4,897

(1)

Capital expenditure amounts are stated on an accrual basis. See Consolidated Statements of Cash Flows for capital expenditure amounts on a cash basis.

(2)

During the nine-month period ended January 26, 2025, depreciation expense for the mattress fabrics segment included additional depreciation expense related to the shortening of useful lives of equipment associated with the gradual discontinuation of operations at our manufacturing facility located in Quebec, Canada. The amount of additional depreciation expense was $1.3 million and was classified as restructuring expense in the Consolidated Statements of Net Loss.